W508i Problem company telling i have to buy a new one for full price.

Ok My boyfriend and I got 2 new W508i with plan two days before Christmas.
start off at the store. I asked for a camera phone, but we both needed phone that could stand up to being dropped that can take a hit because we work a farm. The sales clerk said these phones could stand up very well with heavy work. I was really happy with the phone, but within two days the keys where cracking. I'm not a person that *****es about little things like that. so i wasn't worried about it, but in the pass 2 weeks The memory card doesn't want to stay in. The phone has started freezing, and some calls where not coming through and Just yesterday night the phone Fell from my bed which is only maybe 2 feet at the most from the ground and landed on my carpet floor. and the screen went out. I called the company and there saying i have to buy a new one at full price.
Because When working we most be able to see who's calling and call them back if we miss the call. And now i can't see who calling or how to call back we also use texting alot for our work because it's hard to hear over the tractors.
Now i feel as it i was cheated because we wasn't looking for a phone with big features..i was happy with a camera in the phone and thats it...we more focused on a phone that could stand up to heavy work.
Now i don't know if their trying to cheat me out of more money?
I'm not sure how i should go about talking to them?...can anyone tell me what would be the better way to go about this?

If you don't have insurance on the phone, you will have to buy a new phone.

OK, first of all just about all the phones comes with a one year warranty, either with the service provider or with Sony Ericsson, (or any other brand.). If they don't want to help you out just tell them that you are going to report them or press charges with the FCC. Or another thing is that a contract works both way, if they don't want to provide you with quality service, then tell them that you want to cancel your contract without paying the penalty fee, this is because they are the one suppose to help you out and not just sell the equipment, call the FCC and the BBB and get a free orientation. Good luck.